The DGT has issued Decision No. PER-12/PJ/2020 dated July 1, 2020 concerning the Criteria For Collectors, the Appointment of Collectors, as well as the Collection, Deposit and Reporting of Value-added Tax on the Utilization of Intangible Taxable Goods and/or Taxable Services from Outside the Customs Territory within the Customs Territory through Electronic Commerce Systems (“PMSE”). The key notes of this regulation are summarized as follows:

1. VAT on PMSE is imposed on the utilization of Taxable Intangible Goods and/or Taxable Services from Outside the Customs Territory. The VAT shall be collected, paid and reported by a PMSE Taxpayer that meets the criteria and is appointed by the DGT as a VAT Collector. The limitations of the criteria referred to are:
   • transaction value with Indonesian Buyers exceeds Rp 600.000.000 in one year or Rp 50.000.000 in one month; and/or
   • the amount of traffic or access in Indonesia exceeds 12,000 in one year or 1,000 in one month.
2. PMSE taxpayers that have not been appointed as VAT collectors can apply to the Tax Office to be designated as VAT collectors.
3. A PMSE VAT collector is given a Tax Identity Number by the Tax Office. The PMSE VAT Collector is required to activate the account and perform an update of its online data before the effective date as PMSE VAT Collector.
4. The VAT rate is 10% from the Tax Object, which is the value mentioned in the form and paid by the customer, not including the VAT. The PMSE VAT Collector must collect, pay and report PMSE VAT and issue commercial invoices, billing order receipts or similar documents. If the VAT is not collected by the Collector, the Buyer must collect, pay and report the VAT by itself.
5. The PMSE VAT Collector must pay the VAT at the latest at the end of the following month after the tax period ends and report it no later than the end of the following month after the end of the quarter. Reporting of PMSE VAT obligation must still be done even in the event the amount of VAT collected in the relevant Quarterly period is Nil.
6. The DGT also can ask the Collector to produce a detailed report of the transactions on which VAT is collected for each period of one calendar year, called the VAT PMSE Annual Report, with the details specified.

PER-12 became effective on July 1, 2020.